Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 132 - HC - Income TaxAdmission of additional evidence - Whether in the absence of any ground against admission of additional evidence, the Tribunal was right in law in holding that the CIT(A) was not entitled to consider the evidence of payment to the commission agent? - Held that:- There were two premises for the appellate order: first, that the CIT (A) differed from the AO with regard to appreciation of evidence: it was held, in the appellate order, that some discrepancies with respect to the supplier’s books and the statements by them could not result in such an adverse finding as to reject the assessee’s claims as bogus, and two, that the previous years’ assessments had showed a consistent pattern with regard to the Revenue’s behavior, accepting the assessee’s claims regarding the same suppliers and agents. This court is of the opinion that the ITAT’s reasoning is not entirely based on the consideration of the fresh evidence under Rule 46-A. It is based on its independent analysis and appreciation of the evidence on record. The assessee’s counsel is correct in contending that the powers of the CIT (A) are wide under Section 250 of the Act; that the authority can adduce fresh findings. A close scrutiny of the ITAT’s findings – impugned in this case, would reveal that the tribunal took note of the assessee’s lapses in replying to the AO’s specific queries. It then considered the materials on record, in the form of statements made on behalf of M/s RKDNP with regard to what was actually paid. The other findings regarding improbability of such huge amounts remaining outstanding, no interest payable to the commission agent were to bolster the finding that the transactions reported were not credible. AO went to great lengths to find out whether and if any genuine transactions were entered into by its suppliers; the CIT (A) brushed aside those findings based on a solitary instance of export: of rice by another party. However, the findings with respect to the seven supplies and those involved in it- and the statements recorded of representatives of those entities, were a matter of record. What the ITAT did was to analyze the CIT (A)’s findings. That it was entitled to do, clearly. And while doing so, it frowned upon the CIT (A)’s order to the extent it considered fresh material. However, those observations by no means are the only basis for upsetting the Appellate Commissioner’s order; rather they are only asides, so to speak. If those observations are ignored, what is apparent is that the ITAT’s findings are based on an independent analysis of the AO’s reasoning While the CIT (A) could have considered the previous orders (of the revenue relating to past assessments) they could not have been the main bases for reversing the AO’s order. The ITAT’s impugned order, it is noticeable, is not based on the so called infirmity attached to the CIT (A)’s order; it is based on its own overall analysis of the evidence. Those are clearly findings of fact, which do not indicate any unreasonableness or other infirmity, calling for interference. - Decided in favour of the revenue
|